TCREUR_Public/170525.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

          Thursday, May 25, 2017, Vol. 18, No. 103



OUTOKUMPU OYJ: Moody's Raises CFR to B2, Outlook Still Positive


FRIGOGLASS SAIC: S&P Cuts CCR to 'SD' on Missed Coupon Payment
GREECE: Insists Summer Disbursement Issue "Settled"
TITAN CEMENT: S&P Raises CCR to 'BB+' on Improved Credit Metrics


BLUEMOUNTAIN FUJI: S&P Assigns Prelim. B- Rating to Cl. F Notes
UROPA SECURITIES 2007-1B: S&P Affirms B- Rating on Cl. B2a Notes


ALITALIA SPA: Ryanair Not Interested to Acquire Airline
BERICA 6: Moody's Raises Rating on EUR8.6MM Class D Notes to B2
SESTANTE FINANCE 2: S&P Affirms 'CCC+' Rating on Class C2 Notes
WASTE ITALIA: Fitch Withdraws 'RD' LT Issuer Default Rating


KOSOVO TELECOM: Averts Bankruptcy After Z-Mobile Fine Waiver


CREDIT UNION: S&P Raises Counterparty Credit Ratings to 'BB'
RUSSIA: Credit Profile Reflects Strong Government, Moody's Says


IM TARJETAS 1: DBRS Confirms Csf Rating on Class B Bonds


EFG BANK: Moody's Affirms Ba1 Preferred Stock Rating Ratings

U N I T E D   K I N G D O M

ELEMENT MATERIALS: S&P Affirms 'B' CCR on Planned Acquisition
JAEGER: Suppliers Mull Legal Action Over Unpaid Debt
NOTTS COUNTY FC: Averts Liquidation Following Settlement
SEADRILL LTD: Replaces Chief Executive Amid Financial Woes
SYNLAB UNSECURED: Fitch Affirms 'B' LT Issuer Default Rating



OUTOKUMPU OYJ: Moody's Raises CFR to B2, Outlook Still Positive
Moody's Investors Service has upgraded to B2 from B3 the
corporate family rating (CFR) of Finland-based stainless steel
manufacturer Outokumpu Oyj (Outokumpu). Concurrently Moody's also
upgraded Outokumpu's probability of default rating (PDR) to B2-PD
from B3-PD, and the ratings of the senior secured notes to B1
from B2. The outlook on the ratings is positive.

"The upgrade of the CFR to B2 reflects the significant
improvement of the company's credit metrics during 2016", said
Hubert Allemani, a Vice President -- Senior Analyst at Moody's.
"Moody's expect that Outokumpu will continue to improve its
financial performance this year achieving positive free cash flow
and financial deleveraging" added Mr Allemani.

Outokumpu improved its Moody's adjusted EBIT margin in 2016 to
1.7% from negative 2.3% in 2015. The improvement was driven by
both Europe and the US where management made significant
operational progress. While still low, Moody's believes that the
margin improvement is sustainable and that the company should be
able to capitalize on the improved market conditions, both in
terms of demand and base price, to grow its profitability and
cash generation this year.

Moody's believes that Outokumpu will be able to leverage on the
strong start of the year to achieve a Moody's adjusted EBIT in
excess of EUR450 million and meet its net debt target of EUR1.1
billion. The company reported positive Moody's adjusted free cash
flow (FCF) in 2016 of approximately EUR175 million, for the first
time over the last five years. Moody's expects Outokumpu to
continue to be FCF positive this year, which should support the
company's deleveraging effort.


Outokumpu's B2 CFR reflects (1) solid business profile supported
by geographical diversification and wide product mix; (2)
positive market fundamentals expected over the next two years in
its two main markets of Europe and Americas; (3) leading market
shares; (4) well invested manufacturing facilities; and (5)
stable and supportive shareholder structure including a 23.8%
indirect stake of the Government of Finland (Aa1, stable) through
Solidium Oy.

However, the rating is constrained by (1) the high level of
competition from Asian manufacturers in both Europe and the US;
(2) improving but still low profitability with Moody's adjusted
EBIT margin of 1.7% at the end of 2016; and (3) high leverage as
measured after Moody's standard adjustments of 6.8x as of
December 31, 2016.

Outokumpu benefits from well invested manufacturing facilities in
Europe with a low cost base. The Tornio, Finland, manufacturing
plant benefits from its integration into ferrochrome and from low
energy prices. This is a competitive advantage compared to other
European peers and has been a driver behind the strong first
quarter 2017 results.

Moody's expects the company FCF to stay positive this year at a
level similar or above the EUR175 million achieved in 2016. While
working capital has been a strong support to cash flow in 2016,
Moody's expects a working capital requirement of approximately
EUR160 million this year due to the strong growth. Capex is
expected to be higher compared to 2016 to allow for additional
maintenance but remaining under EUR200 million.

Moody's expects that Outokumpu will be able to improve its EBITDA
to levels ranging between EUR600 million and EUR650 million. The
higher EBITDA and expected repayment of outstanding debt out of
excess cash should result in a lower Moody's adjusted leverage of
under 4x at the end of 2017.


Outokumpu liquidity profile is solid and supported by cash on
balance sheet of EUR81 million at the end of March 2017 (EUR204
million at year end 2016), and approximately EUR725 million of
availability under its committed long term facilities. The cash
position at the end of March is distorted by the working capital
seasonality, which Moody's expect to partially revert during the
second half of the year.

The company has access to a syndicated revolver of a total amount
of EUR655 million maturing in February 2019. In addition,
Outokumpu has two bilateral revolving facilities granted by
Nordic banks of a total amount of EUR120 million. Finally, the
group has access to a EUR800 million commercial paper (CP)
program to manage its short term needs. As of March 31, 2017,
EUR346 million were outstanding.

The short-term profile of Outokumpu's debt maturity schedule
makes the company dependent on banking lines and the availability
of the commercial paper market. However, the current EUR775
million of committed facilities is sufficient to cover the debt
maturities for the next 2 years. Except for the CPs which are of
short term maturity by nature, Outokumpu's first outstanding
notes are due in 2019. Moody's expects that the company will be
able to issue commercial papers or bank debt to maintain a strong
liquidity profile, if necessary.


The positive outlook reflects Moody's expectation that Outokumpu
will be able to continue to improve its EBIT and EBITDA over the
next two years such that credit metrics for profitability, cash
flow and Moody's adjusted leverage would be in line with a B1 or
a higher rating.

What Could Change the Rating Up

Moody's could upgrade the rating if (1) Moody's adjusted EBIT
margin trends above 5.5% on a sustainable basis; (2) EBIT to
interest trends towards 2.5x; (3) the company maintains a strong
liquidity profile supported by positive free cash flow; and (4)
Moody's adjusted leverage decrease sustainably below 4.5x.

What Could Change the Rating Down

The outlook could be stabilized if Moody's does not see any
significant deleveraging or the company is unable to maintain
positive free cash flow.

Moody's could downgrade the rating if (1) Moody's adjusted EBIT
margin trends below 2.5% on a sustainable basis; (2) EBIT to
interest trends under 1.5x; (3) the company liquidity profile
deteriorates with pressure mounting towards notes refinancing;
and (4) Moody's adjusted leverage increase sustainably above


The principal methodology used in these ratings was Global Steel
Industry published in October 2012.

Headquartered in Helsinki, Finland, Outokumpu is a leading global
manufacturer of cold-rolled stainless steel. It holds the lead
position in Europe with a market share of 30% and number two
market position in North America, with a market share of 25%.
With a total revenue in 2016 of EUR5.7 billion, Outokumpu is one
of the largest Finnish companies.


FRIGOGLASS SAIC: S&P Cuts CCR to 'SD' on Missed Coupon Payment
S&P Global Ratings lowered its long-term corporate credit rating
on Frigoglass SAIC to 'SD' (selective default) from 'CC'.

At the same time, S&P lowered to 'D' from 'CC' its issue rating
on the EUR250 million senior unsecured notes issued by the group
financing vehicle Frigoglass Finance B.V.

S&P understands that, on May 15, Frigoglass missed a coupon
payment on its EUR250 million senior secured notes due 2018.  S&P
believes that the company intends to ask for a waiver of any
default or event of default that may arise out of the nonpayment
of interest on the notes.

S&P does not expect Frigoglass to be able to make a payment in
the relevant grace period of 30 days from the missed payment
date.  The company intends to apply to the High Court of Justice
of England and Wales to sanction a scheme of arrangement to
implement the restructuring.

Under the proposed terms, S&P understands that the EUR250 million
notes due in May 2018 will not be repaid (principal and interest)
in full and on time.  The coupons for the new first-lien and
second-lien notes will be lower than the existing ones (8.25% per
year) and the maturity date will be changed to December 2021 from
May 2018.  Some of the existing notes will be exchanged for more
junior securities such as second-lien notes and shares in

Within the next few months, after the final closing of the
restructuring process, S&P will raise the rating to focus on the
new conventional company's default risk.

GREECE: Insists Summer Disbursement Issue "Settled"
Szu Ping Chan at The Telegraph reports that Greece has sought to
calm fears of a summer default as economists warned that
uncertainty surrounding the country's debt pile had put it on
course for a fourth bail-out.

Athens failed to reach an agreement with its international
creditors following hours of late night talks aimed at unlocking
the latest tranche of Greece's EUR86 billion (GBP74.2 billion)
rescue package, The Telegraph relates.

Brussels and the eurozone were at loggerheads with the
International Monetary Fund (IMF) over the size and timing of any
reduction in Greece's debt burden, which the IMF has insisted is
a requirement for its participation in the country's third bail-
out, The Telegraph discloses.

According to The Telegraph, the IMF is reportedly working on a
compromise with Greece's other creditors that would pave the way
for a EUR7 billion disbursement of rescue cash this summer,
enabling Athens to meet its debt obligations.

The plans, which the Financial Times said were backed by Wolfgang
Schaeuble, Germany's finance minister, would enable the IMF to
formally join the programs, which Berlin has insisted on, while
creating time for politically sensitive talks on debt relief, The
Telegraph notes.

The proposals, which have not been finalized, mean the IMF would
not provide Greece with any cash until the eurozone has agreed a
clear plan on debt relief, The Telegraph states.  Greece's debt
share currently stands at 180pc of gross domestic product (GDP),
according to The Telegraph.

Talks between the Eurogroup of finance ministers were suspended
until next month, The Telegraph relays.

According to The Telegraph, Dimitris Tzanakopoulos, a spokesman
for the Greek government, insisted that the issue of the summer
disbursement had been "settled" after Athens passed a series of
further austerity measures, including pension cuts.

Analysts at Citigroup, as cited by The Telegraph, said that,
while a near-term debt default was "unlikely", it said political
and economic uncertainty raised the chance that Greece would need
a fourth rescue package.

                      *     *     *

On May 10, 2017, the Troubled Company Reporter-Europe reported
that the preliminary agreement between Greece and its
international creditors is a positive step towards unlocking
funds to enable the country to meet its July debt maturities,
Fitch Ratings says.  It is also a prerequisite for discussions on
longer-term debt relief but the eventual timing and outcome of
these remains uncertain.

The Greek government and the country's international creditors
said on May 2 that they had reached a preliminary agreement on
the second review of Greece's third bailout program.  Greece has
committed to further cut pensions, raise some taxes, and reform
labor and energy markets.  If the Greek parliament approves these
measures, eurozone finance ministers could approve the release of
around EUR7 billion of European Stability Mechanism (ESM) funds.
The funds will be partly used for clearance of general government
arrears with the private sector as well as for covering EUR6.3
billion of debt due for repayment in July.

Fitch said, "This would be consistent with our baseline
assumption when we affirmed Greece's 'CCC' sovereign rating in
February.  We took into account Greece's broad program
compliance and the eurozone authorities' desire to avoid a fresh
Greek crisis.  We also acknowledged that popular and political
opposition in Greece to elements of the program remains high,
which create substantial implementation risk.  But we think
government MPs are more likely to approve the reforms than reject

As reported by the Troubled Company Reporter-Europe on March 1,
2017, Fitch Ratings affirmed Greece's Long-Term Foreign and Local
Currency Issuer Default Ratings (IDRs) at 'CCC'.  The issue
ratings on Greece's long-term senior unsecured foreign- and
local-currency bonds are also affirmed at 'CCC.  The Short-term
Foreign and Local Currency IDRs and the rating on Greece's short-
term debt have all been affirmed at 'C', and the Country Ceiling
at 'B-'.  Greece's 'CCC' IDRs reflect the following key rating

The Greek government is broadly complying with the terms of the
EUR86 billion European Stability Mechanism (ESM) program.  The
second review of the program remains incomplete and there are
disagreements among the country's European creditors and the IMF
around the long-term sustainability of Greek public debt.  The
delay in the completion of the second review increases the risk
that the recent economic recovery will be undermined by a hit to
confidence or by the Greek government building up arrears with
the private sector to preserve liquidity.

TITAN CEMENT: S&P Raises CCR to 'BB+' on Improved Credit Metrics
S&P Global Ratings raised its long-term corporate credit ratings
on Greece-based cement producer Titan Cement Co. S.A. and its
100% owned finance company Titan Global Finance PLC, to 'BB+'
from 'BB'.  The outlook is stable.

At the same time, S&P affirmed the short-term ratings on Titan
Cement at 'B'.

S&P also raised its issue ratings on the EUR300 million fixed-
rate notes due July 2019 and EUR300 million fixed-rate notes due
June 2021, issued by Titan Global Finance PLC, to 'BB+' from

Greece-based cement producer Titan Group's robust operating
performance in the U.S. continues to fuel an improvement in
overall group results and credit metrics despite persistently
challenging market conditions in some core markets, such as
Egypt, Brazil, Turkey, and Greece.  S&P now expects that Titan's
credit metrics will stabilize at a level comfortably commensurate
with an intermediate financial risk profile, specifically funds
from operations (FFO) to debt of more than 30%, and debt to
EBITDA of about 2.5x.

S&P continues to assess Titan Cement's business risk profile as
fair, partly because the group is smaller than several of its
higher-rated heavy material peers, and has a multi-regional,
rather than a global presence.  In S&P's view, this implies that
Titan is more exposed to local construction cycles, has higher
country risk, and could see more volatility in its profitability.
Titan remains vulnerable to construction end-markets that are not
only highly cyclical and seasonal, but also highly capital- and
energy-intensive.  Relative to peers, Titan has a greater
exposure to higher-risk countries like Egypt, Greece, Brazil, and
Turkey, meaning there is currently greater potential downside
against S&P's base case.

Now that management has reached the end of a long capital
expenditure (capex) investment cycle and a level of leverage that
it is comfortable with, S&P expects its strategy to become
slightly more shareholder-friendly, that is, capex should
gradually reduce, while dividends gradually rise.

S&P's base case assumes:

   -- Overall group revenue growth of 4%-5% primarily based on
      continued strong demand in the U.S.

   -- In Greece, local demand will remain depressed at
      historically low levels.  The group's domestically
      installed capacity for cement production in Greece is much
      greater than local consumption, making the group somewhat
      dependent on exports to international markets to manage
      capacity and cover fixed costs.

   -- In Egypt, management has moved swiftly to address natural
      gas fuel supply chain concerns and, since the successful
      conversion of three of its domestic plants to coal,
      production volumes have largely been recovered.
      Nevertheless, some uncertainty persists due to a highly
      competitive market where pricing conditions can be
      aggressive.  This could be exacerbated in future by new
      capacity coming online as the Egyptian army pushes ahead
      with plans to open its own large plant near Titan's plant
      in Beni Suef.

   -- Turkey and Brazil are small, but growing, markets for the
      group with good potential.  Volumes in Turkey are robust,
      but in Brazil they remain low.  Pricing conditions remain
      tough in both of these markets and foreign exchange rates
      are expected to hit final results.

  -- S&P forecasts that Titan's stabilizing share of exports,
     further cost reductions, and price increases will enable it
     to improve its S&P Global Ratings-adjusted EBITDA margin
     further toward 20%-21% in 2017.

Based on these assumptions, S&P arrives at these credit measures:

   -- FFO rising to about 33%;
   -- Debt to EBITDA stabilizing at about 2.5x;
   -- Positive free operating cash flows (FOCF) due to a gradual
      reduction in overall capex compared with recent years; and
   -- A more shareholder-friendly approach and higher dividends.

The stable outlook reflects S&P's view that Titan will continue
to exhibit a robust performance in the U.S., with gradually
improving EBITDA margin and credit metrics commensurate with an
intermediate financial risk profile.  S&P believes that Titan's
performance and liquidity is effectively delinked from Greek
sovereign risk and anticipate that Titan will be able to sustain
positive discretionary cash flow and at least adequate liquidity
over the next 12 months.

S&P could lower the rating if it no longer believes that Titan
Cement's core credit metrics will be sustained at the
intermediate financial risk profile level.  Specifically, if debt
to EBITDA were to trend toward 3x or more and FFO to debt were to
fall to less than 30% with no prospect of a swift recovery, or if
supplemental credit ratios like FOCF to debt were to weaken
significantly.  This could occur if economic recovery, and
therefore demand, in some of Titan's main markets, notably the
U.S., was to falter or if the group were to invest, make
acquisitions, or increase capex above S&P's base case.  Pressure
on the ratings could also arise if Titan Cement's liquidity

S&P considers a further upgrade as unlikely over its 12-month
rating horizon.  However, S&P could raise its ratings on Titan
Cement if the group were to improve and sustain FFO to debt above
45%, while sustaining debt to EBITDA at less than 2x.  S&P would
also expect industry and market conditions to be supportive of an


BLUEMOUNTAIN FUJI: S&P Assigns Prelim. B- Rating to Cl. F Notes
S&P Global Ratings assigned its preliminary credit ratings to
BlueMountain Fuji EUR CLO II DAC's class A, B, C, D, E, and F
notes.  At closing, the issuer will also issue unrated
subordinated notes.

The preliminary ratings assigned to BlueMountain Fuji EUR CLO
II's class A, B, C, D, E, and F notes reflect S&P's assessment

   -- The diversified collateral pool, which consists primarily
      of broadly syndicated speculative-grade senior secured term
      loans and bonds that are governed by collateral quality

   -- The credit enhancement provided through the subordination
      of cash flows, excess spread, and overcollateralization.

   -- The collateral manager's experienced team, which can affect
      the performance of the rated notes through collateral
      selection, ongoing portfolio management, and trading.

   -- The transaction's legal structure, which is expected to be
      bankruptcy remote.

S&P considers that the transaction's documented counterparty
replacement and remedy mechanisms adequately mitigate its
exposure to counterparty risk under S&P's current counterparty

Following the application of S&P's structured finance ratings
above the sovereign criteria, S&P considers the transaction's
exposure to country risk to be limited at the assigned
preliminary rating levels, as the exposure to individual
sovereigns does not exceed the diversification thresholds
outlined in S&P's criteria.

At closing, S&P considers that the transaction's legal structure
will be bankruptcy remote, in line with its legal criteria.

BlueMountain Fuji EUR CLO II can establish subsidiary special-
purpose entities (sub-SPEs) to hold equity securities, received
as part of a workout of an underlying defaulted or distressed
asset, and assets that are not permitted to be acquired under
U.S. investment guidelines (defined as ineligible obligations).
S&P understands that these sub-SPEs are intended to prevent
collateralized debt obligations (CDOs) from incurring entity
level taxation.  S&P expects that any sub-SPEs established will
meet its applicable criteria for sub-SPEs.  These criteria, among
other things, look for the sub-SPE to be consistent with our
published criteria for rating bankruptcy remote SPEs, the sub-
SPE's expenses to be subject to the administrative expense cap in
the CDO's payment waterfall, and prohibit the sub-SPE from
obtaining title to real property.

Following S&P's analysis of the credit, cash flow, counterparty,
operational, and legal risks, S&P believes that its preliminary
ratings are commensurate with the available credit enhancement
for each class of notes.

BlueMountain Fuji EUR CLO II is a European cash flow corporate
loan collateralized loan obligation (CLO) securitization of a
revolving pool, comprising euro-denominated senior secured loans
and bonds issued mainly by European borrowers. BlueMountain Fuji
Management, LLC is the collateral manager.


Preliminary Ratings Assigned

BlueMountain Fuji EUR CLO II DAC
EUR358.70 Million Senior Secured and Deferrable Floating-rate
Notes (Including Subordinated Notes)

Class          Prelim.           Prelim.
               rating             amount
                                (mil. EUR)
A              AAA (sf)           207.80
B              AA (sf)             44.70
C              A (sf)              20.60
D              BBB (sf)            17.50
E              BB (sf)             22.50
F              B- (sf)              9.80
Sub.           NR                  35.80

NR--Not rated.

UROPA SECURITIES 2007-1B: S&P Affirms B- Rating on Cl. B2a Notes
S&P Global Ratings raised its credit ratings on Uropa Securities
PLC series 2007-1B's class M1a, M1b, and M2a notes.  At the same
time, S&P has affirmed its ratings on the class A2b, A3a, A3b,
A4a, A4b, B1a, B1b, and B2a notes.

The rating actions follow S&P's credit and cash flow analysis
under its European residential loans criteria and S&P's current
counterparty criteria.

In the portfolio of assets backing this transaction, arrears have
been stable and losses have been decreasing since 2009.  Arrears
are below our U.K. residential mortgage-backed securities (RMBS)
index but are following the same trend.  To consider the
possibility of a further deterioration in asset performance, S&P
has applied more stressful arrears as part of its credit
stability analysis, under which the ratings do not deteriorate
below the levels stated in S&P's criteria.

Taking into account the U.K.'s improving economy, and the high
proportion of interest-only loans backing the transaction, the
asset principal pay-down has remained low, and therefore the
pool's characteristics have not significantly changed since S&P's
Feb. 27, 2015 review.  However, the weighted-average seasoning
increased to 119 months in the March 2017 payment date from 95.4
months in the February 2015 payment date.  Under S&P's European
residential loans criteria, this improves the credit quality of
the assets, which is then mitigated by the level of arrears
considered, which includes capitalized arrears.

The available credit enhancement for all classes of notes has
increased since S&P's previous review.  All classes of notes
benefit from the credit enhancement provided by the fully funded
reserve fund (ú4.25 million) and excess spread.

The rating actions reflect the maximum achievable ratings the
notes in this transaction can have under S&P's current
counterparty criteria, based on the link to its long-term issuer
credit rating (ICR) on Danske Bank A/S as the guarantee
investment contract (GIC) and liquidity facility provider.  Even
if the downgrade language for the GIC provider is in line with
S&P's current counterparty criteria, S&P do not rely on it due to
the lack of remedy actions taken in August 2012 when S&P
downgraded Danske Bank below the documented trigger.  S&P also do
not rely on the downgrade language for the liquidity facility
provider due to what S&P considers to be weak commitment language
that applies if the liquidity facility provider ceases to be an
appropriately rated entity.  Therefore, although S&P's credit and
cash flow results may suggest higher ratings, the maximum
achievable rating for the classes of notes in this transaction
would be 'A (sf)', which is the long-term ICR on Danske Bank.

In addition, under S&P's current counterparty criteria, its
ratings on the notes are linked to its long-term ICR on the
currency swap counterparty, The Royal Bank of Scotland PLC, plus
one notch, which is 'A-'.  This is due to the swap documentation
not fully complying with our current counterparty criteria.
Currently, the swap counterparty is posting collateral after S&P
downgraded it in November 2013.

Taking into account the counterparty considerations above, S&P

   -- Affirmed its 'A- (sf)' rating on class the A2b notes, as
      this class of notes is delinked from the ICR on the
      liquidity facility provider but is capped at the lower of
      the ICR on the GIC provider and the ICR on the swap
      provider plus one notch.

   -- Affirmed its 'A- (sf)' ratings on the class A3a, A3b, A4a,
      and A4b notes, and raised to 'A- (sf)' from 'BBB (sf)' its
      ratings on the class M1a and M1b notes, as these classes of
      notes are linked to the ICR on the liquidity facility
      provider and are also capped at the lower of the ICR on the
      GIC provider and the ICR on the swap provider plus one

   -- Raised to 'BBB (sf)' from 'BB (sf)' its rating on the class
      M2a notes as this class of notes is linked to the ICR on
      the liquidity facility provider and is also capped at the
      lower of the ICR on the GIC provider and the ICR on the
      swap provider plus one notch.  However, the increase in
      available credit enhancement for this class of notes is
      only commensurate with a 'BBB (sf)' rating.

   -- Affirmed its 'B (sf)', 'B (sf)', and 'B- (sf)'ratings on
      the class B1a, B1b, and B2a notes, respectively.  These
      classes of notes are linked to the ICR on the liquidity
      facility provider and are also capped at the lower of the
      ICR on the GIC provider and the ICR on the swap provider
      plus one notch.  However, the increase in available credit
      enhancement is only commensurate with an affirmation of
      S&P's ratings on these classes of notes given their
      subordination in the priority of payments.

Uropa Securities' series 2007-1B closed in August 2007 and is
backed by a pool of U.K. nonconforming residential mortgages
originated by GMAC Residential Funding Co. LLC, Kensington
Mortgage Co. Ltd., and Money Partners Ltd.


Class               Rating
            To                   From

Uropa Securities PLC
EUR616 Million, GBP212.524 Million, $17 Million Mortgage-Backed
Floating-Rate Notes And An Overissuance Excess-Spread-Backed
Floating-Rate Notes Series 2007-1B

Ratings Raised

M1a          A- (sf)             BBB (sf)
M1b          A- (sf)             BBB (sf)
M2a          BBB (sf)            BB (sf)

Rating Affirmed

A2b          A- (sf)
A3a          A- (sf)
A3b          A- (sf)
A4a          A- (sf)
A4b          A- (sf)
B1a          B (sf)
B1b          B (sf)
B2a          B- (sf)


ALITALIA SPA: Ryanair Not Interested to Acquire Airline
RTE News reports that Ryanair chief executive Michael O'Leary
said on May 23 the airline is ready to deploy up to 30 planes in
Italy to replace capacity lost if Alitalia collapses or is
restructured but does not want to buy the struggling Italian

Alitalia has filed for bankruptcy protection and a commissioner
was appointed to review its future and determine whether it can
continue under a new business model, RTE relates.

According to RTE, the commissioner, Luigi Gubitosi, has said that
Alitalia's long-haul traffic is doing well and that selling the
airline in one block would be the preferred option.

Asked at a Brussels news conference whether Ryanair would be
interested in buying Alitalia, Mr. O'Leary replied with an
unequivocal "no", RTE relays.

He added that his company had submitted an expression of interest
only because it wants to "participate in the process", RTE notes.

Ryanair, RTE says, is instead preparing to deploy up to 20
aircraft initially over a two-week period this summer if Alitalia
cuts capacity significantly.

According to RTE, the planes will be found by tweaking schedules
and extending leases, he said, adding that the potential
deployment could increase up to 30 planes over the next 12

The airline's CEO, as cited by RTE, said Ryanair might take "a
couple of additional deliveries" from Boeing over the next 18

                       About Alitalia

Alitalia-Compagnia Aerea Italiana has navigated its way through
a successful restructuring.  After filing for bankruptcy
protection in 2008, Alitalia found additional investors, acquired
rival airline Air One, and re-emerged as Italy's leading airline
in early 2009.  Operating a fleet of about 150 aircraft, the
airline now serves more than 75 national and international
destinations from hubs in Fiumicino (Rome), Milan, Turin, Venice,
Naples, and Catania.  Alitalia extends its network as a member of
the SkyTeam code-sharing and marketing alliance, which also
includes Air France, Delta Air Lines, and KLM.  An Italian
investor group owns a majority of the company, while Air France-
KLM owns 25%.

                      *     *     *

Alitalia was the subject of a bail-out in 2014 by means of a
significant capital injection from Etihad Airways, with goals of
achieving profitability during 2017.  However, increased
competition on routes operated by U.K.-based carriers and
significantly higher labor costs led to the ultimate failure of
Etihad Airways' profitability goals for Alitalia.  During late
April 2017, labor unions representing Alitalia workers rejected a
plan that called for job reductions and pay cuts for workers.
Following the failure of these negotiations, Etihad Airways
signaled an unwillingness to invest additional capital into the
company and shareholders ultimately agreed to file for
extraordinary administration proceedings on May 2, 2017.

BERICA 6: Moody's Raises Rating on EUR8.6MM Class D Notes to B2
Moody's Investors Service has upgraded the ratings of 5 notes in
2 Italian RMBS deals. The rating action reflects the increased
levels of credit enhancement for the affected notes.

Moody's affirmed the ratings of 2 notes that had sufficient
credit enhancement to maintain their current rating.

Issuer: Berica 6 Residential MBS S.r.l.

-- EUR1185M Class A2 Notes, Affirmed A1 (sf); previously on
    July 26, 2016 Upgraded to A1 (sf)

-- EUR42.8M Class B Notes, Upgraded to Baa1 (sf); previously on
    July 26, 2016 Affirmed Ba3 (sf)

-- EUR28.6M Class C Notes, Upgraded to Baa1 (sf); previously on
    March 27, 2015 Downgraded to Caa3 (sf)

-- EUR8.6M Class D Notes, Upgraded to B2 (sf); previously on
    March 27, 2015 Downgraded to Ca (sf)

Issuer: Capital Mortgage S.r.l. (Capital Mortgages Series 2007-1)

-- EUR1736M Class A1 Notes, Upgraded to A3 (sf); previously on
    March 27, 2015 Downgraded to Baa2 (sf)

-- EUR644M Class A2 Notes, Upgraded to A3 (sf); previously on
    March 27, 2015 Downgraded to Baa2 (sf)

-- EUR74M Class B Notes, Affirmed B3 (sf); previously on
    March 27, 2015 Downgraded to B3 (sf)


The rating actions are prompted by:

- For Capital Mortgage S.r.l. (Capital Mortgages Series 2007-1),
   deal deleveraging resulting in an increase in credit
   enhancement for the affected notes.

- In the case of Berica 6 Residential MBS S.r.l, build-up of the
   Reserve fund above the target resulting in an increase in
   credit enhancement for the affected notes.

Increase in Available Credit Enhancement:

Sequential amortization and non-amortising reserve funds or
trapping of excess spread led to the increase in the credit
enhancement available in these transactions.

The Originators/Sellers Banca Popolare di Vicenza S.p.A, "BPVi
(Not rated) and Banca Nuova S.p.A. "BN" (Not Rated) both
belonging to the BPVi group have repurchased the defaulted loans
from Berica 6 Residential MBS S.rl.(The "Issuer"). The Issuer has
used the proceeds of the sale according to the transaction
waterfall in January 2017. All the amounts remaining after
payment of the interest on class E Notes were added to the cash
reserve account as an additional cash reserve above the target
cash reserve.

For instance, the credit enhancement for the most senior note
affected by rating action increased from 15.01% in October 2016
before the repurchase took place, to 32.46% in January 2017 after
application of the proceeds of the sale.

The principal methodology used in these ratings was "Moody's
Approach to Rating RMBS Using the MILAN Framework" published in
September 2016.

The analysis undertaken by Moody's at the initial assignment of
these ratings for RMBS securities may focus on aspects that
become less relevant or typically remain unchanged during the
surveillance stage.

Factors that would lead to an upgrade or downgrade of the

Factors or circumstances that could lead to an upgrade of the
ratings include (1) performance of the underlying collateral that
is better than Moody's expected, (2) deleveraging of the capital
structure and (3) improvements in the credit quality of the
transaction counterparties [and (4) a decrease in sovereign

Factors or circumstances that could lead to a downgrade of the
ratings include (1) an increase in sovereign risk (2) performance
of the underlying collateral that is worse than Moody's expected,
(3) deterioration in the notes' available credit enhancement and
(4) deterioration in the credit quality of the transaction

SESTANTE FINANCE 2: S&P Affirms 'CCC+' Rating on Class C2 Notes
S&P Global Ratings affirmed its credit ratings on Sestante
Finance S.r.l. series 2's class A, B, C1, and C2 notes.

The affirmations follow S&P's credit and cash flow analysis of
the most recent transaction information that S&P has received as
of the April 2017 payment date.  S&P has applied its European
residential loans criteria and its structured finance ratings
above the sovereign (RAS) criteria.

Since December 2014, available credit enhancement--considering
performing collateral only--has increased for all classes of

Class         Available credit
               enhancement (%)
A                        29.76
B                         7.25
C1                       (2.96)

The reserve fund has not been replenished since its depletion in
October 2009.

Severe delinquencies of more than 90 days, at 6.44%, are on
average higher for this transaction than S&P's Italian
residential mortgage-backed securities (RMBS) index.  Defaults
are defined as mortgage loans in arrears for more than 12 months
in this transaction.  Cumulative defaults, at 10.186%, are also
higher than in other Italian RMBS transactions that S&P rates.
Prepayment levels remain low and the transaction is unlikely to
pay down significantly in the near term, in S&P's opinion.

After applying S&P's European residential loans criteria to this
transaction, S&P's credit analysis results show an increase in
the weighted-average foreclosure frequency (WAFF).  S&P's
analysis also shows a decrease in the weighted-average loss
severity (WALS) at the 'AAA' and 'AA' rating levels, but a slight
increase at the 'A' to 'B' rating levels.

Rating level    WAFF (%)    WALS (%)
AAA                27.29       12.87
AA                 21.24       10.21
A                  15.91        5.64
BBB                13.12        3.55
BB                 10.26        2.21
B                   7.39        2.00

The WAFF movements are mainly due to the application of S&P's
arrears assumptions, while the WALS movements are mainly due to
the application of S&P's updated market value decline
assumptions. The overall effect is an increase in the required
credit coverage for all rating levels.

Taking into account the results of S&P's credit and cash flow
analysis and the application of its RAS criteria, which
constrains the maximum potential rating in this transaction at 'A
(sf)', S&P considers that the available credit enhancement for
the class A notes is commensurate with the currently assigned
rating.  S&P has therefore affirmed its 'A (sf)' rating on this
class of notes.

S&P considers that the available credit enhancement for the class
B and C1 notes is commensurate with the currently assigned
ratings.  S&P has therefore affirmed its 'BBB (sf)' and 'B- (sf)'
ratings on the class B and C1 notes, respectively.

The repayment of the class C2 notes relies on the available
excess spread in the transaction and it depends significantly on
favorable circumstances, which will not happen in the near term,
in S&P's opinion.  S&P has therefore affirmed its 'CCC+ (sf)'
rating on the class C2 notes in line with its criteria for
assigning 'CCC' category ratings.

In S&P's opinion, the outlook for the Italian residential
mortgage and real estate market is not benign and S&P has
therefore increased its expected 'B' foreclosure frequency
assumption to 2.55% from 1.50%, when S&P applies its European
residential loans criteria, to reflect this view.

Sestante Finance series 2 is an Italian RMBS transaction, which
closed in December 2004.  It is backed by a pool of residential
mortgage loans originated by Meliorbanca SpA.


Class       Rating

Sestante Finance S.r.l.
EUR653.453 Million Asset-Backed Floating-Rate Notes Series 2

Ratings Affirmed

A           A (sf)
B           BBB (sf)
C1          B- (sf)
C2          CCC+ (sf)

WASTE ITALIA: Fitch Withdraws 'RD' LT Issuer Default Rating
Fitch Ratings is withdrawing the 'RD' Long-Term Issuer Default
Rating and the 'C/RR5' senior secured notes ratings of Waste
Italia SpA (WI) as Fitch will no longer have sufficient
information to maintain the ratings. Accordingly, Fitch will no
longer provide ratings or analytical coverage for WI.

The company's 'RD' rating, initially assigned June 17, 2016,
reflects the status of pre-bankruptcy proceedings. Creditors will
be called upon to approve or reject the company's restructuring
plan in the coming months. With lack of details on the plan and
no accounts available since 2015, information available to Fitch
is limited.


Pre-Bankruptcy Agreement: Faced with notice of acceleration by
the bondholders on January 26, 2017, WI sought protection from
its creditors under article 168 of the Legge Fallimentare. BNP
served notice of acceleration with respect to the EUR15 million
revolving credit facility on February 1, 2017. The company
formally applied for concordato preventivo "con riserva" on
March 31, 2017.

A restructuring plan is due to be submitted to the Bankruptcy
Court by June 5, 2017, but WI can apply for a 60-day extension
until August 4. The Court must decide whether to uphold the
validity of the plan, which would then be followed by a vote from
the creditors as to whether to accept or reject the plan. Fitch
has not had any details about the debt restructuring plans from
WI. However, Fitch understand that a rejection of the plan under
concordato preventivo "con riserva" would likely lead to a
bankruptcy of WI.

Limited Information: The publication of 2016 accounts and
accounts for 1H17 have been postponed until early 2018 following
the application for concordato preventive "con riserva". Fitch
has been unable to update its recovery analysis for the secured
notes in the absence of accounts, updated business plan and
liquidity at WI, which Fitch nevertheless views as insufficient.


KOSOVO TELECOM: Averts Bankruptcy After Z-Mobile Fine Waiver
Fatos Bytyci at Reuters reports that state-owned Kosovo Telecom
has avoided bankruptcy after a Kosovan mobile operator agreed to
waive a EUR32 million (US$35.78 million) fine imposed over a
breach of contract.

Privately owned Z-mobile won a contract in 2008 to use Kosovo
Telecom's (PTK) network and technology but later took the state
company to court, saying PTK did not provide it with enough SIM
cards and had refused to offer 3G and 4G mobile Internet
services, Reuters recounts.

In December last year, an arbitration court in London ordered PTK
to pay a EUR32 million fine, putting the company, which employs
3,500 staff, on the brink of bankruptcy, Reuters relays.

"Z-mobile agreed not to implement the arbitration court's
decision which is worth 32 million euros," Reuters quotes PTK's
Chief Executive Agron Mustafa as saying.

"We did not have this money and we had faced bankruptcy."

Z-mobile confirmed that it had waived payment of the fine but did
not say why, Reuters discloses.

Mr. Mustafa, as cited by Reuters, said PTK would pay court fees
and the two companies would honor provisions in the contract
signed almost a decade ago.

According to Reuters, once the country's most profitable state-
owned company, Kosovo Telecom suffered a 63% drop in net profits
in 2015, amid inefficiencies and rising competition from Kosovo's
second-largest mobile operator is IPKO, owned by Telekom


CREDIT UNION: S&P Raises Counterparty Credit Ratings to 'BB'
S&P Global Ratings raised its foreign and local currency long-
term counterparty credit ratings to 'BB' from 'BB-' on Russia-
based Credit Union Payment Center (RNKO), the core subsidiary of
Center of Financial Technologies Group (CFT Group).  The outlook
is stable.  At the same time, S&P affirmed its 'B' short-term
rating on RNKO.

Also, S&P raised the Russia national scale rating to 'ruAA' from

The upgrade reflects S&P's view of CFT Group's resilient
financial performance in both money transferring and IT segments
despite the challenging operating environment in the Commonwealth
of Independent States (CIS), where the company operates.  In
particular, S&P views positively CFT Group's adherence to a
conservative financial policy, suggesting management's commitment
to a zero debt policy, cautious organic growth, and modest
dividend payouts.

S&P no longer sees a significant degree of event risk of
increased leverage, stemming from the company's acquisition
policy, its shareholder remuneration policy, or its organic
growth strategy, relative to S&P's previous base-case forecast.

S&P don't expect CFT Group to make any acquisitions in the next
12-24 months, as it already has leading market positions in both
its main segments: money transferring and IT software for banks.
That said, S&P believes that the probability that antitrust
authorities would permit any deal is pretty low.  S&P assumes
that CFT Group will not issue debt over the rating horizon, given
the group's excess of liquidity.  Shareholder returns are limited
by the regulatory ratios in RNKO's dividend policy.  S&P
forecasts dividends for the next four years of around 30%-40% of
expected net profit, while the payout for 2017 will be above that
estimate, since CFT Group didn't pay dividends for 2015-2016 and
the group has significant excess capital available for
distribution to shareholders.

S&P's assumptions of organic growth are limited, at around 1% of
revenues growth, for the next three years.

S&P now assess the group credit profile for CFT Group at 'bb',
from 'bb-' previously.  S&P's ratings on CFT Group continue to
reflect S&P's assessments of its weak business risk profile and
minimal financial risk profile.

The rating on RNKO also reflects S&P's view of its status as a
core subsidiary of CFT Group.  The group owns 100% of RNKO, which
is the group's settlement center for money transfer and payment
systems.  RNKO's business, operations, and strategy are closely
integrated with those of the group.  S&P views RNKO as an
infrastructure vehicle whose primary goal is to secure the
settlement of transactions in CFT Group's payment systems.  S&P
considers that CFT Group does not have any incentive to sell
RNKO, as this would disrupt payment flows.  The creation or
purchase of another settlement center would be costly and time-
consuming, in S&P's view.

In error, S&P previously considered the business risk of CFT
Group in the context of a single business line, applying S&P's
criteria. S&P has corrected this error, applying paragraph 27 of
its "Corporate Methodology," (published Nov. 19, 2013) to assess
two business lines separately: IT software business and money
transferring lines, and S&P uses the weighted average for the two
business lines.  Accordingly, S&P applies its "Key Credit Factors
For The Technology Software And Services Industry" (published
Nov. 19, 2013) for software business and our "Key Credit Factors
For Financial Services Finance Companies" (published Dec. 9,
2014) for money transferring.  As a result, S&P's assessment of
CFT Group's business risk profile remains weak.  The correction
results in no change to S&P's ratings on RNKO.

The stable outlook on RNKO reflects S&P's opinion that CFT Group
will maintain its competitive position and resilient financial
performance in the next 12-18 months, despite the still weak
operating conditions in the region where it has its main

S&P could consider taking a negative rating action over the next
12-18 months if, contrary to S&P's expectations, CFT Group's
operating conditions lead to a material decline in revenues and
its profitability weakens substantially.  S&P could also lower
the ratings in the unlikely event that CFT Group raised a
significant amount of debt, such that its debt to EBITDA exceeded

S&P do not view a positive rating action as likely at this stage,
given the group's high business concentration and its business
position relative to that of its peers.

RUSSIA: Credit Profile Reflects Strong Government, Moody's Says
Russia's Ba1 rating with a stable outlook is underpinned by its
strong government and external balance sheets and increasingly
effective macro policy management, which have helped to contain
the impact of lower oil prices and international sanctions, said
Moody's Investors Service in a report published. The country's
credit challenges include volatility related to the economy's
reliance on oil and gas exports, weak potential growth, chronic
underinvestment and a tense geopolitical environment.

Moody's annual update, "Government of Russia -- Ba1 Stable --
Annual Credit Analysis", is now available on
Moody's subscribers can access this report via the link at the
end of this press release. The research is an update to the
markets and does not constitute a rating action.

"Russia's economy entered a recovery path last year that will
gain pace in 2017," said Kristin Lindow, a Moody's Senior Vice
President and co-author of the report. "Despite the significant
negative impact from the oil and gas price shock since mid-2014,
Russia's fiscal and debt metrics look favorable in comparison to
its rating peers."

Moody's forecasts that real GDP growth will increase by 1.5% per
year in 2017 and 2018, with private consumption and investment
spending supported by gains in household real incomes and
gradually easing monetary policy. Still, an ageing population is
among the constraints expected to prevent Russia's potential
growth from expanding in the absence of fundamental structural

Moody's expects Russia's general government deficit to GDP ratio
to decline in 2017-18 as a result of fiscal consolidation and
stronger revenue prospects, which in turn will lead to only a
slight increase in the general government debt-to-GDP ratio. The
general government deficit is expected to narrow to 1.8% of GDP
by 2018 from 3.7% of GDP in 2016, driven mainly by a reduction of
the deficit at the federal level, while other budgets, including
the regions, should be broadly balanced.

Moody's projections for deficit reduction are somewhat more
favourable than that of the government's three-year plan, partly
because the rating agency's revenue assumptions are based on
higher oil price forecasts.

Positive pressure on Russia's rating would stem from the
enactment of government reforms that would sustainably enhance
the economy's diversity and increase productivity and
competitiveness, raising the economy's growth potential.

Conversely, negative pressure on the rating would follow any
material weakening of the country's capacity to absorb new
shocks, such as through a significant erosion of its major credit
strengths: its strong government balance sheet or its ample
external liquidity.

Stress in the banking system would also be negative because the
government needs a stable source of domestic financing in order
to fund its budget deficits, especially in the context of
international sanctions. Finally, deterioration in the domestic
or regional political environment that resulted in an expansion
of existing sanctions or spurred a revival of capital flight
would also be credit negative.

This Credit Analysis elaborates on Russia's credit profile in
terms of Economic Strength, Institutional Strength, Fiscal
Strength and Susceptibility to Event Risk, which are the four
main analytic factors in Moody's Sovereign Bond Rating


IM TARJETAS 1: DBRS Confirms Csf Rating on Class B Bonds
DBRS Ratings Limited (DBRS) has taken the following rating
actions on the bonds issued by IM Tarjetas 1, FTA (the Issuer):

-- Class A confirmed at A (sf)
-- Class B confirmed at C (sf)

The rating actions on the Class A and Class B notes follow an
annual review of the transaction and are based on the following
analytical considerations:

-- Portfolio Performance, in terms of delinquencies and
    defaults, as of the February 2017 payment date.
-- No early amortisation events have occurred.
-- Current available credit enhancement to the Class A notes to
    cover the expected losses at the A (sf) rating level.

The rating of the Class A notes addresses the timely payment of
interest and the ultimate payment of principal on the Maturity
Date. The Class B notes are in the first loss position and, as
such, are highly likely to default. Given the characteristics of
the Class B notes as defined in the transaction documents, the
default would most likely be recognised at maturity or following
early termination of the transaction.

The Issuer is a Spanish securitisation of credit card receivables
initially originated and serviced by Citibank Espana S.A. The
transaction closed in November 2012. In September 2014, after
Bancopopular-e acquired Citibank Espana's retail business, the
following amendments were made to the transaction:

-- Bancopopular-e replaced Citibank Espana S.A. as Originator
    and Servicer;

-- Banco Santander S.A. substituted Citibank International, plc
    (Spanish Branch) as Treasury Account Bank and Paying Agent,
    and Citibank Espana S.A. as Reinvestment Account Bank; and

-- The guarantee provided by Citibank N.A. on the Servicer
    obligations was replaced by the Servicer Guarantee provided
    by Banco Popular Espanol, S.A.

In October 2015, a new amendment was signed, extending the
accumulation period and the legal maturity of the transaction for
a further 18 months.

In May 2016, the Guarantee Agreement under which Banco Popular
Espanol, S.A. guaranteed the performance of the obligations of
Bancopopular-e, S.A. with regard to the Servicer Agreement, was

Additionally, the function of the Commingling Reserve was
modified in order to cover any shortfalls resulting from the
breach of any of the Servicer's obligations, and the target level
increased to EUR 17.650 million from EUR 8.825 million.


As of February 2017, two-to-three month arrears were at 0.70% and
the 90+ delinquency ratio was at 1.59%.

The annualised portfolio yield is currently at 23.13%. The
annualized charge-off rate as of February 2017 was at 4.17%, and
has averaged 4.14% over the last 12 months. The Monthly Payment
Rate (MPR) has been ranging between 12.47% and 15.49% since
closing and has averaged 13.81% over the last 12 months.


Class A credit enhancement has remained stable at 16.00% and is
provided by subordination of the Class B notes. The transaction
is still in its Accumulation Period which ends on 22 July 2017.
During the Accumulation Period, principal collections and any
amount standing credit to the Acquisition Reserve may be used to
purchase new receivables generated from the credit card

A Commingling Reserve is available to mitigate liquidity
shortfalls in the event of insolvency of the Servicer, or other
shortfalls due to the breach of any of the Servicer's
obligations. On each payment date, amounts standing credit to the
Commingling Reserve will become part of the Principal Available
Funds up to the amount of collections that can be considered
Commingled Collections. The Commingling Reserve is currently at
its target level of EUR 17.650 million.  A dilution reserve is
available to protect the issuer against potential losses arising
from Credit Card Dilutions, including merchandise disputes,
servicer rebates and fraud. The Dilution Reserve
is currently at its target level of EUR 10.625 million.

Banco Santander S.A. (Santander) is the Account Bank for this
transaction. The account bank reference rating of "A" -- being
one notch below the DBRS Long-Term Critical Obligations Rating of
Santander of A (high) -- complies with the Minimum Institution
Rating given the rating assigned to the Class A notes, as
described in DBRS's "Legal Criteria for European Structured
Finance Transactions" methodology.


EFG BANK: Moody's Affirms Ba1 Preferred Stock Rating Ratings
Moody's Investors Service has affirmed EFG Bank AG's (EFG Bank)
A1/P-1 long- and short-term deposit ratings and changed the
outlook on the long-term deposit ratings to stable from negative.
The rating agency also affirmed the bank's A1(cr)/P-1(cr)
Counterparty Risk Assessment (CR Assessment) as well as its baa1
baseline credit assessment (BCA) and baa1 Adjusted BCA.

Furthermore, Moody's affirmed EFG International AG's (EFGI, or
the group) A3 long-term issuer ratings and changed the outlook to
stable from negative. Concurrently, the rating agency affirmed
the group's Ba1(hyb) non-cumulative preferred stock rating

The affirmation of EFG Bank and EFGI's ratings reflects the
stabilization in both entities' credit profiles, because the
strengthening of their capitalization mitigates existing,
material legal risks in relation to the acquisition of Swiss-
based private bank BSI Group (unrated). The stable outlook on the
bank's and the group's long-term ratings reflects Moody's view
that remaining integration risks from the BSI Group acquisition
are manageable, including the agencies' expectation of limited
incremental outflow of assets under management (AuM) from prior
BSI customers.



The affirmation of EFG Bank's BCA and Adjusted BCA at baa1
reflects Moody's assessment that remaining legal risks, including
material litigation risks in relation to the acquisition of
Swiss-based private bank BSI Group, are mitigated by a
strengthening of the bank's and the group's capitalization.
Manageable incremental AuM attrition will lead to a stabilization
in the bank's standalone credit profile, while the full positive
effects from integrating the BSI private banking platform will
only become visible in 2019.

The decision to affirm EFG Bank's BCA takes into account Moody's
view that meaningful indemnities exist in order to protect EFG
Bank and EFGI from significant legal and litigation risks. These
indemnities are negotiated with BSI's former owner, Brazil's
Banco BTG Pactual S.A. (BTG; deposits Ba3 stable, BCA ba3) and
provide some protection for the bank's and the group's current
level of capitalization. At year-end 2016, EFGI's CET1 ratio
improved to 18.2% from 12.4% in 2015, reflecting the successful
capital raising of CHF454 million in order to finance the BSI
transaction; and the mitigating effects from the purchase price
reduction for BSI, which declined to CHF784 million compared to
EFG's initial estimate of CHF1.3 billion. The lower purchase
price mainly reflects AuM attrition at BSI and the decline in
EFGI's share price. However, the final purchase price is still
subject to final agreement between the related parties. In
addition, Moody's anticipates that EFG Bank's capital has
improved following the completion of the legal integration of
BSI's Swiss business into EFG Bank AG, which became effective
April 7, 2017.

Following the closing of the BSI acquisition in November 2016,
Moody's expects a stabilization of EFG Bank's and EFGI's private
banking franchise, because a large part of expected client
departures and AuM attrition have already materialized. At end-
March 2017, EFGI reported combined AuM of around CHF141 billion,
a further reduction of around CHF4 billion compared with end-
2016, and significantly lower than the estimated combined AuM
base of CHF171 billion at deal announcement in February 2016. The
announcement of fines and other significant measures imposed on
BSI by the Swiss and Singapore regulators on May 24, 2016 in
relation to the Malaysian money-laundering case (1MDB) triggered
significant outflows.

The affirmation is further supported by EFG Bank's strong
liquidity and liability-driven balance sheet which also benefited
from the legal integration of BSI's Swiss business into EFG Bank.
Following the transfer, Moody's estimates that customer deposits
account for around 80% of the combined entity's assets. Despite
the addition of meaningful customer loans from BSI, Moody's
considers EFG Bank's low balance-sheet risk profile to remain
unchanged because a sizeable portion of new loans relate to Swiss


The affirmation of EFG Bank and EFGI's long-term ratings follows
the affirmation of the bank's BCA and Adjusted BCA. The notching
applied to EFG Bank and EFGI's rated liabilities under Moody's
Advanced Loss Given Failure (LGF) analysis remains unchanged
following rating action and takes into account the rating
agency's assessment of EFG Bank and BSI AG's combined balance

EFG Bank's A1 deposit ratings continue to benefit from an
extremely low loss-given-failure reflecting the high volume of
deposits and subordinated debt classes protecting deposit holders
in the unlikely event of failure or resolution, leading to three
notches of rating uplift from its baa1 Adjusted BCA.

For EFGI's A3 issuer ratings, Moody's LGF analysis indicates a
low loss-given-failure for EFGI's senior debt instruments,
reflecting the volume of senior debt outstanding and the cushion
through equity and subordinated liabilities available at the
holding company level, leading to one notch of rating uplift from
EFG Bank's baa1 Adjusted BCA.

The Ba1(hyb) ratings of EFGI's Tier 1 hybrid capital instrument
(Bons de Participation) remain positioned three notches below the
bank's baa1 Adjusted BCA reflecting additional loss severity
notching and its non-cumulative coupon-skip mechanism, which is
based on a balance-sheet loss trigger as well as optional
conversion language at the issuer's discretion.


The stable outlook on EFG Bank and EFGI's long-term ratings
reflects Moody's assessment of manageable remaining integration
risks in relating to the acquisition of BSI, specifically
regarding limited incremental AuM attrition over the next 12 to
18 month. The stable outlook also takes into account that
potential litigation risks for EFG Bank and EFGI are
appropriately covered under the negotiated indemnity caps with


An upgrade of EFG Bank's and EFGI's long-term ratings could be
triggered by an upgrade of the bank's BCA subject to (1) a
meaningful reduction in contingent liabilities from pending
litigation cases; (2) higher capital ratios and an improving
leverage ratio; and (3) a sustained improvement in profitability.

An upgrade of EFGI's long-term issuer ratings could also be
triggered by significant issuance of bail-in-able debt
instruments to an extent that it would reduce expected losses and
therefore result in higher notches of rating uplift; however,
this does not apply to EFG Bank's deposit ratings, which already
benefit from the highest possible uplift from Moody's LGF

A downgrade of EFG Bank's and EFGI's long-term ratings would
likely arise from a downgrade of EFG Bank's BCA, which could be
caused by (1) unexpected litigation charges that exceed Moody's
current expectations; (2) a sustained weakening in the bank's and
the group's capitalization; (3) a material, prolonged erosion in
assets under management, as well as client or advisor attrition;
and (4) additional commercially or financially aggressive
acquisitions. A downgrade could also result from a material
reduction in the volume of outstanding senior unsecured debt or
subordinated instruments such that these instruments face a
higher expected loss, resulting in lower rating uplift under
Moody's Loss Given Failure framework.


The following ratings and rating inputs were affirmed:

EFG Bank AG:

- Baseline credit assessment (BCA) at baa1

- Adjusted BCA at baa1

- Long-term bank deposit ratings (local and foreign currency) at
   A1, outlook changed to stable from negative

- Long-term Counterparty Risk Assessments (CR Assessment) at

- Short-term bank deposit ratings (local and foreign currency)
   at P-1

- Short-term CR Assessment at P-1(cr)

Outlook Action:

- Outlook changed to stable from negative

EFG International AG:

- Long-term issuer ratings (local and foreign currency) at A3,
   outlook changed to stable from negative

- Non-cumulative preferred stock (foreign-currency) at Ba1(hyb)

- Long-term CR Assessment to A1(cr)

- Short-term CR Assessment at P-1(cr)

Outlook Action:

- Outlook changed to stable from negative


The principal methodology used in these ratings was Banks
published in January 2016.

U N I T E D   K I N G D O M

ELEMENT MATERIALS: S&P Affirms 'B' CCR on Planned Acquisition
S&P Global Ratings affirmed its 'B' long-term corporate credit
rating on U.K.-based materials testing company Element Materials
Technology Ltd.  The outlook is stable.

At the same time, S&P assigned its 'B' issue rating to Element's
proposed $1.135 billion-equivalent first-lien term loan due 2024,
$100 million revolving credit facility (RCF) due 2023, and
$50 million capital expenditure (capex) facility due 2024.  The
recovery rating is '3', indicating S&P's expectation of
meaningful recovery (50%-70%; rounded estimate: 55%) in the event
of a payment default.

S&P will withdraw its issue and recovery ratings on the company's
existing facilities following the close of the transaction.

The rating actions follow Element's announcement on April 19,
2017, that it had reached an agreement to acquire U.K.-based
testing, inspection, and certification provider Exova Group for a
cash consideration of ú620.3 million.  The acquisition is subject
to customary closing conditions and regulatory approvals, and
will likely be completed by the end of June 2017.

To fund the acquisition, Element has secured $1.365 billion of
funded term debt, consisting of a $1.135 billion-equivalent
first-lien loan due 2024, a $230 million second-lien loan due
2025, as well as a $100 million RCF and $50 million capex
facility.  The funding includes a $250 million equity injection
from private equity shareholder Bridgepoint and the management
team.  In conjunction with the acquisition, Element will also
refinance its outstanding $536 million senior secured facilities.

The acquisition will significantly improve the group's global
scale, since revenue and EBITDA will more than double.  It will
also consolidate and enhance Element's position as the leading
materials testing services provider for the aerospace, defense,
automotive, and oil and gas industries in the U.S. and Europe.
In addition, Exova will enhance the group's end-market and
geographic diversity because of its presence in other industries,
such as fire, health science, and building products, and will
decrease the reliance on aerospace and defense and the U.S.
market.  What's more, the acquisition will reduce Element's
exposure to more cyclical oil and gas markets, which suffered
from the downturn in the industry throughout 2015 and 2016, to
about 10% of the combined group.  S&P also considers that Exova's
operations complement Element's, in terms of product offering and
customer portfolio, with only limited overlap.

That said, pro forma the acquisition, the group's revenue
generation in the U.S. will remain at approximately 50%, which is
still significant, and exposure to aerospace and defense at about
40%.  In addition, S&P expects the group's operating margins will
decline somewhat in the near term, due to integration costs and
Exova's exposure to some lower-margin segments.  Over the longer
term, S&P expects procurement savings and other synergies will
gradually improve the group's operating margins.  Overall, S&P
foresees the acquisition improving the group's business risk
profile to the higher end of S&P's fair category, supported by
the critical nature of Element's accreditation and certification
services, which provides effective barriers to entry and has
resulted in relatively low customer attrition over recent years.

S&P maintains its view that Element's financial risk profile is
highly leveraged, and that the group will achieve adjusted debt
to EBITDA of nearly 9.5x (about 7.8x-8.0x excluding the
shareholder loan) in 2017, improving to about 8.5x (about 7.0x
excluding the shareholder loan) in 2018.  S&P expects the group's
cash flow coverage metrics will remain in line with our
benchmarks for the rating, with adjusted funds from operations
(FFO) cash interest coverage above 2.5x and on an improving
trend.  Despite costs associated with the integration of Exova,
S&P forecasts that the combined group can generate positive free
operating cash flow (FOCF).  Moreover, S&P believes the group
will be able to deleverage if Exova's integration is successful
and does not result in unexpected costs and cash outflows.  S&P's
assessment of Element's financial policy as aggressive continues
to reflect the group' private equity ownership, as demonstrated
by Element's high leverage.

The stable outlook reflects S&P's view that Element will be able
to integrate Exova successfully, strengthen its leading positions
as a materials and product qualification testing provider in
niche segments in the U.S. and in Europe, and gradually improve
the combined group's operating margins despite some margin
dilution in the short term.  In addition, S&P projects that
Element can maintain credit metrics in line with a highly
leveraged financial risk profile in the near term, including a
ratio of adjusted debt to EBITDA well above 5.0x.

S&P could consider a negative rating action if the integration of
Exova did not progress as planned and led to higher costs and
lower synergies than expected, such that operating margins
deteriorated significantly below our base-case assumptions.  S&P
would also take a negative rating action if FOCF after all
exceptional costs turned negative, or if our adjusted FFO cash
interest coverage figure declined to about 2.0x.  In addition,
any further significant debt- or cash-funded acquisitions could
trigger a negative rating action

Due to the group's high post-transaction debt leverage and
aggressive financial policy, S&P is unlikely to raise the ratings
in the near future.  However, S&P could consider an upgrade if
Element demonstrated a track record of improved credit metrics--
such that adjusted debt to EBITDA were sustained below 5.0x--and
the group did not pay dividends.  An improvement in credit
metrics could result from better operating conditions than S&P
currently forecasts, leading to accelerated growth in adjusted

JAEGER: Suppliers Mull Legal Action Over Unpaid Debt
The Daily Mail reports that suppliers owed millions of pounds are
threatening legal action over the sale of Jaeger.

Jaeger sold its lucrative trademark license before calling in the
administrators -- leaving just bricks and mortar shops available
for bidders, The Daily Mail relates.

It meant there was no hope of a white knight stepping in to save
the 133-year-old business, putting 25 stores and 700 jobs at
risk, The Daily Mail notes.  And in turn, it has left suppliers
out of pocket, The Daily Mail states.

Cesar Araujo, of Portuguese textiles firm Calvelex, is among a
group of suppliers who say they are owed millions by Jaeger and
its former owners, Better Capital, The Daily Mail discloses.

According to The Daily Mail, Mr. Araujo, 49, said he represented
more than 12 suppliers who were owed "a lot of millions of

Jaeger was bought by Better Capital in 2012 for GBP19.5 million,
The Daily Mail recounts.

In March, Better Capital sold Jaeger's debt to a mystery buyer,
understood to be Edinburgh Woollen Mill, which is owned by
billionaire retail tycoon Philip Day, The Daily Mail relays.

NOTTS COUNTY FC: Averts Liquidation Following Settlement
Press Association reports that the threat of liquidation hanging
over the Notts County Football Club has been formally lifted.

According to Press Association, a petition to wind up the world's
oldest professional football club was dismissed on May 24 at the
High Court in London after a "dramatic comprise" was signed at
the door of the court.

The club was being pursued for debts said to be more than
GBP600,000 owed to Pinnacle Advantage Ltd, a company of which
former Magpies chief Ray Trew was director, Press Association

The club has been trying to agree a settlement with the
administrators for Pinnacle, which was put into liquidation last
July, Press Association recounts.

James Pickering, representing Notts County, confirmed the
compromise, Press Association relays.  As there were no other
creditors, the registrar declared: "The petition is dismissed
with no order as to costs."

Originally, the club had faced a winding-up application brought
by Her Majesty's Revenue and Customs over reported debts of
GBP500,000, Press Association notes.

According to Press Association, when the tax man's bill was
settled, Pinnacle stepped in as a "substitute creditor".

SEADRILL LTD: Replaces Chief Executive Amid Financial Woes
Cat Rutter Pooley at The Financial Times reports that SeaDrill,
the offshore rig owner that has struggled since the 2014 oil
price crash, replaced its chief executive and reported earnings
ahead of analysts' estimates.

The New York and Oslo-listed offshore drilling contractor said
Per Wulf will stand down after four years in the role, and
Anton Dibowitz, chief commercial officer, will take over in July,
the FT relates.

Mr. Dibowitz acknowledged there were "short-term challenges to
overcome in SeaDrill and the industry", as the group repeated
warnings it was likely to be forced into bankruptcy protection as
part of a wider restructuring of its US$8.2 billion debt, the FT

According to the FT, the company, controlled by John Fredriksen,
the shipping magnate, said it was in "advanced" talks with
investors and lenders ahead of a July 31 deadline for the
refinancing, but stakeholders would still face "substantial"

Since the price of oil started to decline in mid-2014, the group
has lost 96% of its value as lower crude prices have made
offshore oil exploration uneconomic for many producers, the FT

Headquartered in London, Seadrill is an offshore drilling
contractor.  It operates from six regional offices around the
world -- Oslo, Dubai, Houston, Singapore, Rio De Janeiro and
Ciudad del Carmen.

SYNLAB UNSECURED: Fitch Affirms 'B' LT Issuer Default Rating
Fitch Ratings has affirmed Synlab Unsecured Bondco PLC's Long-
Term Issuer Default Rating (IDR) at 'B' with a Stable Outlook.
Fitch has also affirmed Synlab Bondco PLC's senior secured
instrument rating at 'B+'/RR3/55% and Synlab Unsecured Bondco
PLC's senior instrument rating at 'CCC+'/RR6/0%.

Synlab's IDR of 'B' is supported by the growing scale of the
business as well as the defensive nature of the routine medical
testing business model. However, the rating is constrained by the
significant financial leverage, which facilitates the underlying
growth of the operations as Synlab continues to be an active
player in the accelerating consolidation of the fragmented
laboratory testing industry. In Fitch views, high financial
leverage is counterbalanced by beneficial underlying volume
growth, scale benefits support profitability, and low capital
intensity support satisfactory FCF generation and deleveraging
ability in case of need.

The Stable Outlook assumes that Synlab will continue to be an
active consolidator in the industry and continue its selective
'buy-and-build' strategy to grow diversification and scale of the


Stretched Leverage; Supportive Model: Fitch views Synlab's
capital structure as highly leveraged, with funds from operations
(FFO) adjusted gross leverage around 8.0x and FFO fixed charge
cover remaining just below 2.0x (but trending towards 2.0x over a
four-year rating horizon).

Although such leverage is high for the 'B' rating level, the
rating is supported by adequate free cash flow (FCF) generation,
projected on average at 5.0% over Fitch's four-year rating
horizon, as well by a defensive business model, which
increasingly benefits from scale advantages.

Volume Growth Supports Profitability: Despite a comparatively
stable pricing environment at present, Fitch expects structural
pressures on pricing to continue in many of Synlab's core markets
as healthcare payers seek to manage rising medical cost
inflation. However, Fitch expects this trend to be
counterbalanced by volume growth associated with increasing
demand from an ageing population in combination with more
preventive treatments and improved testing technology. Fitch
assesses a sustainable EBITDA margin for this business at around

Active Player in Industry Consolidation: Fitch expects an
increasing pace of consolidation in the fragmented market for
routine and specialist laboratory testing services, with Synlab
remaining an active consolidator following In Fitch ratings case,
Fitch has modelled EUR450 million of additional acquisition
spending over the next two years, aided by the additional
liquidity raised by the recent increase of the Novo equity stake,
increasing Synlab's liquidity and financial flexibility. Fitch
expects upward pressure on EV/EBITDA multiples, to around 8.0-
8.5x for smaller bolt-on and medium-sized acquisitions in the

Above-Average Senior Secured Notes Recoveries: Fitch assigns a
'B+' instrument rating to the senior secured debt, one notch
above the IDR, to reflect Fitch expectations of above-average
recovery in Fitch hypothetical default analysis. In Fitch
analysis, Fitch expects a going concern restructuring scenario to
yield stronger recoveries for creditors than liquidation.
Therefore, Fitch recovery analysis assumes a distressed sale of
the group as a whole because a liquidation of individual labs
could prove challenging given laboratory ownership regulatory
constraints in various European jurisdictions, in particular
clinical pathologists' pre-emptive rights in France.

In its recovery assessment, Fitch conservatively value Synlab on
the basis of a 6.0x EV/EBITDA multiple applied to an estimated
post-restructuring EBITDA of EUR241 million (2016 EBITDA adjusted
for full-year acquisition effects discounted by 20%).

Poor Recovery Prospects for Senior Notes: Based on Fitch recovery
assumptions, the senior notes issued by Synlab Unsecured Bondco
PLC carry poor recovery prospects in a default scenario given
their subordination to the super senior RCF and certain other
obligations of non-guarantor subsidiaries, as well as the senior
secured notes in the debt waterfall. This is reflected in the
instrument rating of 'CCC+/RR6/0%'.


Following last year's merger of Synlab and Labco, the combined
group is the largest lab testing company in Europe, twice the
size of nearest competitor, Sonic Healthcare. Its operations
consist of a network of 465 laboratories across 28 countries,
providing good geographical diversification and less exposure to
single healthcare systems.

The EBITDA margin at around 19.2% is in line with close peer
Unilabs (not rated at 18.8%, although slightly lower than Cerba
HealthCare SAS (B/Stable) at 20.7% because the Group has exposure
to a lower-margin market (Germany). Like other sector peers,
Synlab is highly levered (FFO adjusted gross leverage at above
8.0x in 2016), which is a key rating constraint. However, Synlab
has strong free cash flow generation abilities and Fitch forecast
it to deleverage via earnings growth towards 7.0x by 2019.


Fitch's key assumptions within Fitch ratings case for the issuer

- Low to mid-single-digit organic growth in key markets
- EBITDA margin gradually improving towards 20% due to cost
   savings and economies of scale achieved from the enlarged
- Up to EUR450 million of acquisitions, including bolt-on and
   one mid-sized expected over the next two years
- Moderate capital intensity with CapEx/Sales estimated at
   around 4%
- Satisfactory FCF generation of around 5% on average over the
   four-year rating horizon
- No dividends paid


Future Developments That May, Individually or Collectively, Lead
to Negative Rating Action

- FFO adjusted gross leverage above 8.0x or FFO fixed charge
   cover at less than 1.3x for a sustained period of time (both
   adjusted for acquisitions)
- Reduction in FCF margin to only slightly positive levels or
   large debt-funded and margin-dilutive acquisition strategy
   could also prompt a negative rating action

Future Developments That May, Individually or Collectively, Lead
to Positive Rating Action

- FFO adjusted gross leverage below 6.5x and FFO fixed charge
   cover above 2.0x
- Improved FCF margin in the mid- to high- single digits or more
   conservative financial policy reflected in lower debt-funded
   M&A spending


Satisfactory Liquidity: Synlab has access to a super-senior RCF
of EUR250 million due in 2021, which remains undrawn at present.
Liquidity is aided by the EUR250 million raised by the increase
of Novo's equity stake, which is earmarked for investment in the
business, in addition to positive FCF generation. Synlab's
funding structure is long-dated with no meaningful debt
maturities before 2021.


Synlab Bondco PLC
-- Senior secured RCF affirmed at 'BB/RR1/100%'
-- Senior secured notes affirmed at 'B+'/'RR3'/55%

Synlab Unsecured Bondco PLC
-- Long-Term IDR affirmed at 'B'; Stable Outlook
-- Senior notes affirmed at 'CCC+'/'RR6'/0%


Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par.  Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable.  Those sources may not,
however, be complete or accurate.  The Monday Bond Pricing table
is compiled on the Friday prior to publication.  Prices reported
are not intended to reflect actual trades.  Prices for actual
trades are probably different.  Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind.  It is likely that some entity
affiliated with a TCR editor holds some position in the issuers'
public debt and equity securities about which we report.

Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than US$3 per
share in public markets.  At first glance, this list may look
like the definitive compilation of stocks that are ideal to sell
short.  Don't be fooled.  Assets, for example, reported at
historical cost net of depreciation may understate the true value
of a firm's assets.  A company may establish reserves on its
balance sheet for liabilities that may never materialize.  The
prices at which equity securities trade in public market are
determined by more than a balance sheet solvency test.

Each Friday's edition of the TCR includes a review about a book
of interest to troubled company professionals.  All titles are
available at your local bookstore or through  Go to order any title today.


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter-Europe is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Valerie U. Pascual, Marites O. Claro, Rousel Elaine T. Fernandez,
Joy A. Agravante, Julie Anne L. Toledo, Ivy B. Magdadaro, and
Peter A. Chapman, Editors.

Copyright 2017.  All rights reserved.  ISSN 1529-2754.

This material is copyrighted and any commercial use, resale or
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re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Europe subscription rate is US$775 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial subscription
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